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An economic summary of Australia

Australia remains the brightest star amongst developed economies.

Expanding trade relationships within the Asia Pacific region and considerable investment in technology elevate the country's status even further.

Its main advantages as a resource-rich and stable economy are redoubled by a young, diverse and multilingual talent pool. Coupled with government incentives for innovation, businesses continue to invest and thrive in Australia. Sectors like IT, life sciences, retail and infrastructure are likely to be the biggest winners.

IBR insight on the Australian economy

Growth indicators

Optimism in Australia rose from 50% in Q1 2016 to net 59%. This defies declining optimism in other developed APAC countries.

Revenue expectations for the next 12 months also increased to net 59%.

Export expectations fell by 11 points to 28% from 39% in Q1 2016.

Employment expectations for the next 12 months are in line with Q2 2015 at 39%.

Regional opportunities and challenges

Economic uncertainty decreased by six points since the previous quarter, to 18% in Q2 2016. This is well below the long-term average of 30%.

The number of businesses who see a lack of skilled workers in Australia also decreased to net 6%. This is also well below the long-term average of 27%.

50% of decision makers in Australia see local infrastructure upgrades as the greatest opportunity for the APAC region over the next five years.

41% of Australia’s decision makers see an ageing population as the biggest obstacle to economic prospects.

[1] The International Business Report (IBR), Grant Thornton International's business research programme.